CIBC says buy eBay on weakness

NEW YORK (CBS.MW) -- CIBC World Markets recommended investors buy eBay shares
EBAY, +0.20%
on weakness on the belief that higher marketing costs and margin concerns are not a long-term issue. The stock was slumping $11.91, or 12 percent, to $91.14 in Instinet pre-open trading after the online auctioneer's fourth-quarter earnings and 2005 outlook fell short of expectations due to higher advertising costs and increased investments. "We think revenue growth will accelerate in 2006, and that long-term margins are understated," Analyst Paul Keung said in a note to clients. He reiterated his "overweight" rating and reinstated his $105 price target.

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